Question

If super profit of a firm is 10000 and nrr is 8% what is the goodwill

Answer 1

Answer:

The Goodwill will be 125,000

Explanation:

By Super profit Capitilization method,

the goodwill is equal to

Super profit ×100/normal rate of return

Now Put the values in the formula

super profit=10, 000

Normal Rate of return=8%

=> 10,000×100/8=125, 000